HB591 Alabama 2019 Session

Summary

Primary Sponsor

Chris EnglandRepresentative

Democrat

Session

Regular Session 2019

Title

Class 4 municipality, sales and use tax, mun. authorized to reduce or eliminate its sales and use tax

Summary

HB 591 would allow Class 4 municipalities in Alabama to reduce or eliminate their local sales and use tax on food, through a public process and city council action.

What This Bill Does

It authorizes the city council of a Class 4 municipality to reduce or eliminate its local sales and use tax on food. The change must be proposed after a public hearing and approved by a council resolution, and it would not take effect until the next fiscal year. The definition of food follows the SNAP guidelines for food assistance, with a legislative fallback if SNAP changes. After reducing, the city could later increase or reimpose the tax on food using the same process.

Who It Affects

• Residents of Class 4 municipalities, who could pay less for food if their city's local food tax is reduced or eliminated.
• City councils of Class 4 municipalities, who gain authority to adjust the local food tax through public hearings and resolutions.

Key Provisions

• Section 2 defines 'FOOD' using the SNAP definition for purposes of the local tax, with a legislative fallback if SNAP changes.
• Section 2 defines 'LOCAL SALES TAX' as the tax on gross sales or receipts from tangible personal property, and 'LOCAL USE TAX' as the tax on storage, use, or consumption of tangible personal property.
• Section 3(a) allows a Class 4 city to reduce or eliminate the local tax on food after a public hearing and council resolution, with the change becoming effective in the following fiscal year.
• Section 3(b) allows the city to later increase or reimpose the local food tax using the same process.
• Section 4 makes the act effective immediately after governor approval or when it becomes law.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation